Question - Pet mart wholesale inc., a pet wholesale supplier, was organized on march 1, 2012. projected sales for each of the first three months of operations are as follows:
March $90,000
April $150,000
May $240,000
The company expects to sell 10% of its merchandise for cash of sales on account, 50% are expected to be collected in the month of the sale, 35% in the month following the sale, and the remainder in the second month following the sale.
Pepare a schedule indicating cash collections from sales for March, April, and May.